Market Congestion

Congestion occurs in a network when there is insufficient bandwidth to service all customers, or there are an overwhelming amount of choices, giving individuals too little time to make informed, researched decisions.

Congestion in the GoraNetwork can come in the following forms:

  • Some customers may call data or computations much more frequently, creating disproportionately higher demands on the nodes.

  • Large number of nodes staking early the system (i.e. before enough customers can join) may reduce rewards to levels that make staking or liquidity mining unattractive.

  • Customers adopting the platform before there are enough node runners to service all the requests and subscriptions

  • Too many competing feed providers, reducing profit margin for individual feed providers

Below are the general strategies GoraNetwork uses to reduce congestion.

Fair Payment Methods

The are two payment models in the GoraNetwork. One, allows individuals to subscribe (via smart contract) to a feed provider network, so that monthly payments are withdrawn from an escrow account. This subscription model allows feed providers to be the primary beneficiaries from the growth of the network, since ultimately high quality data is the backbone of any oracle service.

While not all feeds will have a subscription model, the all will have a pay per call method. This pay per call method charges a very small fee to each customer for every data delivery. This method ensures users who rarely request data don't have high costs, while power users pay a fair price for the usage of the system.

Algorand's sortition consensus protocol

GoraNetwork makes use of a proof of stake algorithm developed by Algorand founder Silvio Micali. The algorithm allows an arbitrarily large number of node runners to service the network, without compromising on speed or throughput. It does this by using the tokens of individual node runners to form random committees who will participate in the formation of the next block. This protocol ensure that as the network grows, each additional node runner won't increase latency on the network. See the videos below for a deeper explanation.

Gora Consensus Explainer Video

Algorand Sortition protocol Explanation

Large Number of Node Runners adopting the service early

GoraNetwork has already had over 5,000 node runners join the waitlist before launching the service. The large number of node runners is healthy for the long term operation and scaling of the system, but its also important to manage expectations and have clear guidelines for rewarding node runners so that confidence remains, and the node runners remain a long term part of the system.

GoraNetwork has allocated a portion of tokens as adoption incentives. These adoption incentives will allow early node runners to earn a guaranteed ROI in the first 2 years. In the longer run, however, Node runners will share the pool of rewards. The design of the rewards is such that node runners that join past the optimal point, reduce the rewards, until it reaches a point of equilibrium, where the opportunity cost of staking with GoraNetwork is greater than other use of those funds. The more customers that join, the greater the reward pool, the more node runners are incentivized to join. This positive feedback loop should ideally ensure an optimal level of node runners at all times.

Allow customer to vote on feed providers in aggregated data feeds pools

Opening up the feed provider pool to anyone who wants to provide feeds can result in a congested environment, where poor quality data feeds come through, data sources are replicated, customers are not able to research the providers effectively and high quality providers are not motivated to participate due to low margins.

GoraNetwork aims to solve this by starting off with a group of selected institutional grade feed providers. These feed providers aggregate high quality sources, and as such, already have significant data-pre-processing for accuracy. GoraNetwork aggregates this aggregated data, ensuring the most accurate data of any chain.

Furthermore, GoraNetwork enables individual customers to specifically subscribe to a single one of these data providers, and allows the data providers to provide their own feeds.

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